Following is a "checklist" of selected key concepts that are likely to be included on an exam. Review and check-off each noted item to be certain that important concepts have not been overlooked in your study.

Define accounting.

Identify five typical users of accounting information.

Distinguish between financial and managerial accounting.

Identify the private sector accounting standard setting body.

Distinguish between accounting and bookkeeping.

Differentiate between public and private accounting.

What are key areas of service within a public accounting firm?

What are specialized areas of work within private accounting?

Name selected governmental agencies that employ many accountants.

Name selected not-for-profit enterprises that employ accountants.

What are three typical business entity forms?

Define the principle of historical cost.

Define the objectivity principle.

Note the link between the historical-cost principle and objectivity.

Name selected not-for-profit enterprises that employ accountants.

Know the accounting equation, and mathematical variations of this equation (e.g., assets - liabilities = owner's equity).

Define and cite examples of assets and liabilities.

Define retained earnings and identify the elements that cause it to change.

Know that dividends are not an expense.

Distinguish between the terms revenue and net income.

Know how transactions impact the accounting equation.

Name the four basic financial statements.

Know the proper headings (with their dating) for the balance sheet, income statement, statement of retained earnings.

Describe how the basic financial statements interrelate.